Wednesday, July 20, 2011

EUR/USD: Consolidating - 20 July 2011

The euro-dollar pair is pushing up against resistance from the lower borderline of the triangle. Yesterday it attempted to break back into the pattern but failed; today it is making another attempt.

If it is successful then it will reach the cluster of moving averages at 1.4300 intially; if it fails, however, it will probably fall quite rapidly to support levels from the old trough lows at 1.4015 intially and then the pivot level and low around 1.3840.